LG Display (034220) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue rose 15% quarter-over-quarter and 6% year-over-year to KRW 7,833 billion, driven by smartphone panel shipment expansion, OLED-centric business upgrades, and improved product mix.

• Operating profit turned positive at KRW 83.1 billion, reversing a Q3 loss, with full-year profit improvement of around KRW 2 trillion year-over-year, though still down 37% year-over-year.

• Net loss widened to KRW 839 billion, compared to a net loss of KRW 338 billion in Q3 2024 and a net profit of KRW 51 billion in Q4 2023.

• Panel shipments increased 5% quarter-over-quarter and 17% year-over-year, with ASP per m² up 6% quarter-over-quarter and year-over-year.

• EBITDA for Q4 was KRW 1,306.5 billion, with a 2024 annual EBITDA margin of 17%.

Financial highlights

• EBITDA reached KRW 1,306 billion, up 12% sequentially and 3% year-over-year, with a margin of 16.7%.

• Gross margin improved to 11.5% from 9.2% in Q3 2024 and 11.7% in Q4 2023.

• Operating margin turned positive at 1.1% after negative margins in prior quarters.

• Q4 cash and cash equivalents stood at KRW 2,022 billion; inventory assets declined to KRW 2,671.2 billion.

• Debt-to-equity and net debt ratios were 307% and 155%, respectively.

Outlook and guidance

• Q1 2025 area shipment expected to decline due to TV panel seasonality, with ASP per square meter projected to fall by mid-10% range quarter-over-quarter.

• Despite seasonality, performance is expected to be strong compared to typical Q1, supported by increased loading rates and smartphone model diversification.

• 2025 expected to see year-over-year growth in IT OLED, especially with tandem OLED's unique value proposition.

• Management expects continued improvement through cost innovation and operational efficiency, but notes ongoing weak demand due to external uncertainties.

• Focus remains on strengthening the customer portfolio and high-end market positioning.